Sale of property under sarfaesi act 2002
joydeep chatterjee
(Querist) 13 November 2014
This query is : Resolved
I am attached with a nationalised bank.I need your urgent legal suggestion in the following matter.
One of our loan account was classified NPA on 31.03.2013.after that bank issued notice under 13(2).
after laps of 60 days bank took symbolic possession of the mortgaged residential property.after that also borrower did not pay.
in December 2013 bank published e-auction notice giving statutory 30 days time.but no bidder came and sale was cancelled.
again on 03.08.2014 bank issued sale notice and sale date was 05.09.2014.
This time the auctioned happened and purchaser paid full sale price as per norms.Bank issued sale certificate to the purchaser on 23.09.2014.
Now the borrower contacted and requested the auction purchaser to forego the auction purchase since it is the only residence the borrower is having which the purchaser considered.
now both auction purchaser and borrower wants to amicably settle the issue and borrower will give 5 lacs more to the purchaser as per their mutual agreement over the auction price.
now both of them requesting the bank to mutually settle the issue.
purchaser told us that he will return the original sale certificate to bank and will give one undertaking/affidavit that
henceforth he will not have any claim/right on the auctioned property and the same can be returned to the original owner.
looking at the borrower's request and purchaser's willingness can bank/authorised officer mutually settle the issue?
If Bank can do then what will be the legal process bank should undertake by which bank will be safe guarded in future against any litigation.
This is to further inform you that the property was sold in Rs. 27.00 lakh and bank's due was Rs. 16.00 lakh. The rest Rs. 11.00 lakh is lying with the bank which bank is liable to pay the borrower.Bank only issued sale certificate but registered sale deed has not been executed in favor of purchaser.
Sir, I understand that i have made a long writing but i want all to understand the issue thoroughly.
so i request all the expert to convey their opinion urgently as bank is willing to settle mutually but after safeguarding litigation.
Thanking you in anticipation.
Devajyoti Barman
(Expert) 13 November 2014
1. Since the BANK has issued sale certificate , it has nothing to do with this property anymore and it is divested of all powers to deal with it.
2. I wonder what was the prudence to approach Bank when it has no control over the property any more.
3. now the auction purchaser needs to execute and register a deed of sale in favour of the borrower.
joydeep chatterjee
(Querist) 13 November 2014
Registry deed not executed by bank in favour of purchaser.only sale certificate issued.if purchaser voluntarily request to withdraw sale certificate can bank accept that.because executing sale deed in favor of borrower by purchaser will attract huge stamp duty.pls suggest
Devajyoti Barman
(Expert) 14 November 2014
In auction sale, sale certificate is only issued and no need for deed of sale.
There is no way out.
Give some money to state also else how could it build roads and and impart education to poor children.
Rajendra K Goyal
(Expert) 14 November 2014
After issuing sale certificate Bank should not intervene in the dealing between borrower and the auction purchaser.
K.K.Ganguly
(Expert) 15 November 2014
1. The sale certificate issued by the Bank can not be repealed or cancelled or withdrawn,
2. The sale certificate is not required to be registered also,
3. Once you have issued the sale certificate after receiving the bid amount you have nothing else to do other than returning the excess amount to the Borrower.
T. Kalaiselvan, Advocate
(Expert) 16 November 2014
The experts have explained the situation very well and given proper opinion that once the bank has already given a sale certificate, it has no business to interfere in the issue once again. Let the issue be settled between the auction purchaser and the borrower now. If the borrower is ready to give 5 lakhs more than the price, he could have done that earlier itself with the bankers by settling the entire loan amount which was less than the auction sale amount.
